New Delhi: India has launched a major probe into the alleged dumping of liquefied natural gas (LNG) fuel tanks from China following a complaint by a domestic player. The tanks are used to store and transport methane gas in large vehicles such as trucks, the commerce ministry said in a statement.
The Commerce Ministry’s investigative arm, the Directorate General of Trade Remedies (DGTR), is investigating the dumping of liquefied natural gas (LNG) fuel tanks as imports are hurting the domestic industry’s margins. Inox India Limited has filed a petition demanding the imposition of anti-dumping duty saying that cheap imports have caused damage to the domestic industry.
In general, countries have been conducting anti-dumping investigations to determine whether domestic industries have been hurt by an increase in cheap imports. If the said investigation confirms that dumping has caused material injury to the domestic players, the DGTR will recommend the imposition of anti-dumping duty on these imports. The final decision to impose customs is made by the Ministry of Finance.
“Based on the duly verified written submissions submitted by the domestic industry and based on the prima facie evidence submitted by the domestic industry regarding the dumping of the subject matter, it is satisfied. The Authority hereby initiates an anti-dumping investigation,” the DGTR said in a notification.
In turn, they impose these duties under the multilateral regime of the Geneva-based World Trade Organization (WTO). This duty is intended to ensure fair trade practices and create a level playing field for domestic producers vis-a-vis foreign producers and exporters.
India has already imposed anti-dumping duties on many products to prevent cheap imports from various countries including China. The import of these tanks was $93.6 million in 2023-24, $42.7 million in April-October and $84.7 million in 2022-23.